The specific aims of this project are to investigate empirically the effects of various government policies to regulate the consumption of drugs and alcohol on the incidence and frequency of drug and alcohol consumption, crime and highway fatalities. Two data sets will be employed in this research. The first is a cross-section of the U.S. population taken from the 1985 and 1988 National Household Surveys on Drug Abuse. The survey contains data on whether or not an individual consumed several legal or illegal drugs as well as, for some, the frequency of use. These data will be used to examine the effects of regulatory measures related to drug and alcohol use on drug and alcohol use. The second data set is an annual time-series of state-cross sections for the 50 states of the U.S. and the District of Columbia from 1975 through 1992. Two separate analyses will be conducted using these data. The first looks at the impacts of regulatory measures related to drug and alcohol use on the incidence of crime. The second analysis is an examination of the effects of state and local regulatory measures on driving under the influence of drugs or alcohol. The specific aims will be achieved by estimating four sets of multivariate equations. The first set are drug/alcohol participation equations estimated using probit techniques and the household survey data. The second set are frequency of drug/alcohol consumption equations estimated using multinomial logit techniques and the household survey data. The third set are crime rate equations estimated using simultaneous equations estimation methods with the state data from the Uniform Crime Reports. Finally, the fourth set are logistic motor vehicle accident fatality rate equations constructed from the Fatal Accident Reporting System data estimated using weighted least squares estimation techniques.